5. The burden of a tax on a good is said tofall completely on the producers if the:A) price paid by consumers for the good de-clines by the amount of the tax.B) price paid by consumers for the good in-creases by the amount of the tax.C) price paid by consumers does not change.D) wages received by workers who producethe good increase by the amount of the tax.6. Which of the following is an excise tax?A) a tax of $0.41 per gallon of gasB) a tax of 12.4% of your wagesC) a tax on the value of your propertyD) a one-time local per capita tax of $507.When will buyers of a product pay the ma-jority of a tax placed on a product?A) when supply is more elastic than demandB) when demand is more elastic than supplyC) when the tax is placed on the seller of theproductD) when the tax is placed on the buyer of theproduct8.Suppose that you refill your cat's prescrip-tion every month, buying exactly 30 pills, nomore and no less, regardless of the price. Ifthe government eliminates all taxes on petmedications, who will benefit more?A) Pet owners will receive the entire taxsavings.B) Pet owners and drug companies wouldshare the tax savings.C) Drug companies would receive the entiretax savings.D) Neither pet owners nor drug companieswould see any tax savings.

The burden of a tax on a good is said to fall completely on the producers when the price elasticity…

5. The burden of a tax on a good is said to fall completely on the producers if the: A) price paid by consumers for the good de- clines by the amount of the tax. B) price paid by consumers for the good in- creases by the amount of the tax. C) price paid by consumers does not change. D) wages received by workers who produce the good increase by the amount of the tax.

5. The burden of a tax on a good is said to fall completely on the producers if the: A) price paid by consumers for the good de- clines by the amount of the tax. B) price paid by consumers for the good in- creases by the amount of the tax. C) price paid by consumers does not change. D) wages received by workers who produce the good increase by the amount of the tax.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 7PA

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2. Consider the original market for pizza in Collegetown, Price Quantity demanded supplied of of pizza Quantity illustrated in the accompanying table. Collegetown officials decide to impose an excise tax on pizza of $4 per pizza. a. What is the quantity of pizza bought and sold after the imposition of the tax? What is the price paid by consumers? What is the price received by producers? b. Calculate the consumer surplus and the producer surplus after the imposition of the tax. By how much has the imposition of the tax reduced consumer surplus? By how much has it reduced producer surplus? c. How much tax revenue does Collegetown earn from this tax? of pizza pizza $10 9 1 5 8 2 4 7 3 3 4 2 5 5 1 4 d. Calculate the deadweight loss from this tax. 3 7 2 8 1 9
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